Community Compensation

Definition ∞ Community compensation involves the structured distribution of economic benefits, such as tokens or grants, to participants within a decentralized autonomous organization or blockchain project. These allocations acknowledge contributions to development, governance, or overall ecosystem advancement. The mechanisms for such distributions are typically codified within the protocol or governance rules.
Context ∞ Debates around community compensation frequently address the efficacy of incentive structures and the sustainability of project treasuries. News often covers proposals for retroactive public goods funding, the allocation of development grants, or discussions concerning fair reward distribution models within various decentralized communities. These financial arrangements are pivotal for fostering continued participation and growth.